Allied World Bermuda, a part of Allied World Assurance, has received approval from the state of Florida to qualify as an 'Eligible Reinsurer', which allows to lower collateral requirements on non-domestic reinsurers which are highly rated and financially secure.
Allied World will now be able to post 20% of loss reserves on property catastrophe reinsurance in Florida rather than the 100% required by most non-US reinsurers.
Currently, Florida is one among the small group of states within the US to approve this rule, effectively lowering the barriers of entry into the market for non-US reinsurers.
The Florida Office of Insurance Regulation reviews reinsurers for approval after companies undergo a selective application process requiring them to have capital and surplus of at least $100m, proof of financial strength by at least two nationally recognized rating organizations, and evidence of continued financial soundness and stability.
Allied World Assurance, through its subsidiaries, offers property, casualty and specialty insurance and reinsurance solutions, offering superior client service through a global network of branches and affiliates.